CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A017300070001-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 14, 2016
• Document Release Date: February 4, 2003
• Sequence Number: 1
• Publication Date: October 8, 1970
• Content Type: REPORT

Approved Fo "eeease 2003/03/05: CIA-RDP79T0097SWU1730&0ffMt2
25X1
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Secret
51
8 October 1970
Approved For Release 2003/03/05 : CIA-RDP79T00975AO17300070001-2
 25X1 Approved For Release 2003/03/05 : CIA-RDP79T00975AO17300070001-2
Approved For Release 2003/03/05 : CIA-RDP79T00975AO17300070001-2
 Approved For,&lease 2003/Q9MRDP79T009717300070001-2
Noo 0241/70
8 October 1970
Central Intelligence Bulletin
CONTENTS
BOLIVIA: Torres has declared himself president,
and his forces are consolidating their control.
(Page 1)
CHILE: The economy continues to deteriorate.
(Page 3)
25X1
SIERRA, LEONE: Political violence is on the up-
surge. (Page 5)
COMMUNIST CHINA: Chou En-lai's trip abroad (Page 6)
MALTA-UK: New aid agreement (Page 6)
CUBA: "Che" days (Page 6)
USSR-PERU: Soviet relief aid (Page 7)
ECUADOR: Guayaquil independence celebrations
(Page 7)
SECRET
Approved For Release 2003/03/05 : CIA-RDP79T00975AO17300070001-2
 Approved For$Rlease 2003/Q;IQC-X A' DP79T009754017300070001-2
I BOLIVIA: General Juan Jose Torres declared
himself president after his forces occupied govern-
ment installations in La Paz yesterday afternoon.
General Miranda's forces, which had forced
President Ovando's resignation on 6 October, backed
down in the face of Torres' strong coalition of
loyal elements of the air force and army as well
as leftist-led labor, student, and peasant groups.
Little fighting accompanied the actual takeover,
and Torres' forces are rapidly consolidating their
control
The key to Torres' successful seizure of power
was he backing he received from radical leftist
labor and student leaders. He was able to confront
Miranda's forces with considerable military strenqt
as we 1
Labor and studefit leaders rejected the Miranda-
installed government and agreed to cooperate with
Torres if he accepted their conditions, which in-
cluded university and worker participation in the
new government, respect for university autonomy,
wage increases, and free elections within six
months. Torres apparently accepted at least some
of the conditions, and arms were distribute d
During the confusion yesterday, students led
raids on several US installations in La Paz, as
well as on the homes of pro-Miranda military offi-
cers. Student and labor groups also used the oc-
casion to take over at least two newspapers, form-
ing cooperatives, and ensuring that the leading
voices of the news media will now follow a gener-
ally leftist line.
',Torres demonstrated a proclivity for,demagogu-
ery during the time he participated actively in the
Ovando government. He maintained close relations
8 Oct 70 Central Intelligence Bulletin
SECRET
Approved For Release 2003/03/05 : CIA-RDP79T00975A017300070001-2
25X1
25X1
 Approved Foelease 2003/0FDP79T00917300070001-2
with the leftists Ovando originally appointed to
his cabinet and reportedly was one of the prime
movers in the expropriation of the US-owned Boliv-
ian Gulf Oil Company.]
At the swearing-in ceremony Torres said he
would form a government that would include civilian
members of the groups that supported him. He has,
however, been presented with a new list of 20 de-
mands by a group of leftist leaders of labor, the
universities, and several political parties includ-
ing the pro-Moscow and pro-China Communist parties.
Their continued support apparently hinges on
Torres' acceptance of these demands, which include
the removal of foreign military missions and other
"imperialist" agencies, the abrogation of the com-
pensation settlement with Gulf, the nationalization
of foreign banks and the US--owned Matilde Mines,
workers' control of private industry, and diplomatic
relations with "all sociLalist countries."
8 Oct 70 Central Intelligence Bulletin
SECRET
 Approved For lease
2003103105. &A&79T0097&17300070001-2
CHILE: The economy continues to deteriorate.
Middle and upper class Chileans are continuing
to flee to Argentina and other countries. Heavy
foreign exchange demand by travelers caused the
Central Bank to cut tourist allowances in half,
and upward pressure on black market rates has re-
sumed. Strict foreign exchange controls make cap-
ital flight extremely difficult, however, and of-
ficial foreign reserves continue at a record high.
Sharply reduced sales and ebbing business con-
fidence have caused extreme congestion in Valpara-
iso, Chile's largest port, because importers are
not claiming their merchandise. Also, a strike at
Chile's largest copper mine has sharply reduced
exports.
The Association of Metalworking Industries,
whose members account for 28 percent of industrial
employment, considers the current crisis the worst
in its 31-year history. A poll of its members re-
veals a stark picture of weak consumer demand,
sharply reduced production, widespread defaults on
payment, and shortages of bank credit and cash re-
serves despite the Central Bank's efforts to main-
tain liquidity. The industry's troubles will fur-
ther depress other economic sectors where various
companies already are declaring extraordinary cash
dividends to reduce their investment stake. F
8 Oct 70 Central Intelligence Bulletin
SECRET
25X1
Approved For Release 2003/03/05 : CIA-RDP79T00975A017300070001-2
 25X1 Approved For Release 2003/03/05 : CIA-RDP79T00975AO17300070001-2
Approved For Release 2003/03/05 : CIA-RDP79T00975AO17300070001-2
 Approved For- lease 2003/03%Cgk-RDP79T0097 017300070001-2
SIERRA LEONE: Rising tensions between armed
supporters of Prime Minister Stevens and his polit-
ical opponents have provoked a number of violent
clashes.
The recent upsurge of political violence was
sparked by the activities of important northern
politicians who last month resigned from Stevens'
cabinet, exposing a serious split within the ruling
party. The defectors are vigorously campaigning in
the north, where Stevens traditionally has had a
strong political base, to gain support for their
new United Democratic Party (UDP). Last weekend,
party rallies in two northern cities erupted into
violence.
Police so far have been able to control the
situation, but clashes are likely to continue and
increase in number and seriousness. The prime min-
ister is being urged by some of his backers to move
decisively against the UDP, and to use armed party
thugs if necessary. The opposition has vowed to
meet violence with violence.
8 Oct 70 Central Intelligence Bulletin 5
SECRET
25X1
25X1
25X1
25X1
Approved For Release 2003/03/05 : CIA-RDP79T00975A017300070001-2
 Approved Fo tlease 2003/03/0,~1'4ti'79T009 17300070001-2
25X1
COMMUNIST CHINA: Evidence is increasing that
Chou En-lai's trip abroad has been postponed for
a.: least several months. Last weekend the Tanza-
nian Ministry of Foreign Affairs published a state-
ment denying there were plans for a visit by Chou
in October.
anzanian President Nyerere's busy Janu-
ary schedule may push the visit into February.
The Chinese still plan to send an official delega-
tion to the formal opening of construction of the
Tan-Zam railway, scheduled for late October.
* * *
MALTA-UK: ,C, new financial agreement with
Britain puts Prime Minister Borg-Olivier in a more
favorable position for the coming Maltese election.
The Heath government has consented to the division
j of aid desired by Malta--75 percent in grants and
25 percent in loans? The Wilson government had
insisted on a 50-50 division. Borg-Olivier must
call an election by 24 April next year. There has
been speculation that resolution of the aid impasse
with Britain would enable the prime minister to
call an election at an earlier date
CUBA: A 20-day period of commemoration begins
today for "Che" Guevara, who was killed on 9 Octo-
ber 1967 while leading a guerrilla band in Bolivia.
Fidel Castro has placed great importance on Guevara
as a revolutionary symbol and may use the occasion
to deliver a major pronouncement. He said earlier
that he would dedicate the death mask and the sev-
ered hands of Guevara, which were smuggled out of
Bolivia to Cuba. As in the past, extremist groups
in Latin America may attempt to hold demonstrations
or carry out small-scale terrorist operations in
the next day or two.
Central Intelligence Bulletin
SECRET
proveleas'e'
25X1
25X1
25X1
25X1
25X1
 I Approved For lWease 2003/OS h$`Ii DP79T00975 117300070001-2
25X1
25
-
W v)i\
r Li\v . i11V13 L VW _L M W L ii U 111y Up L Lw7 C .L L11-
quake relief efforts in Peru. Some 147 Soviets
departed Lima on 4 October, leaving only 11 heli-
copter technicians from the Soviet aid contingent.
In another effort to wring as much publicity as
possible from the USSR's relatively small contri-
bution, the Soviet ambassador in Lima in a public
ceremony this week symbolically turned over to
Peru 2,000 tons of relief goods, including 100 pre-
fabricated houses, construction equipment, and
foodstuffs that are en route to Peru by sea. Last
month he turned over three MI-8 helicopters and a
field hospital to the Peruvian minister of health.
25X1
officiate at the ceremonies. Some members of the
armed forces are unhappy with the government's
heavy-handed actions and might decide that this is
ECUADOR: The government is going ahead with
plans to celebrate the 150th anniversary of Guaya-
quil's independence, despite the threat of violence.
Strict security measures have been instituted and
more than 30 extremists have been arrested. Presi-
dent Velasco's popularity has reached a new low in
the city since he fired municipal and regional of-
ficials earlier this week, but he still intends to
the time to move against the President.
8 Oct 70 Central Intelligence Bulletin 7
SECRET
Approved For Release 2003/03/05 : CIA-RDP79T00975A017300070001-2
25X1
 Secrtproved For Release 2003/03/05 : CIA-RDP79T00975AO17300070001-2
Secret
Approved For Release 2003/03/05 : CIA-RDP79T00975AO17300070001-2